Speculation over the possible comeback of Michael Schumacher continues, with Mercedes CEO Nick Fry refusing to quash rumours the former world champion could be in talks to partner Nico Rosberg.

Schumacher has been linked with a return to Formula One ever since he was lined up to stand in for the injured Felipe Massa at Ferrari last season. That deal fell through after an injury to Schumacher's neck proved more serious than at first thought. However, a new deal is now rumoured to be on the table with Mercedes that German newspaper Bild reports to be worth £7 million.

"I think whether it be Michael or another prior world champion, I think that just adds another very interesting element," Fry told Reuters. He refused to rule out Schumacher, saying only that the team is "discussing things with a number of different drivers".

Fry is convinced age would not be a barrier to Schumacher, should the German choose to return.

"Can a 40 or 41-year-old compete against someone who is 24 years old? In other sports people have proven that they are very capable even at that age. I think that would add another fascinating aspect and I think it is irrelevant whether it is Michael or Jacques [Villeneuve] ... I was joking with Mika [Hakkinen] the other day that maybe he should throw his hat in."

Fry said that no announcement on Mercedes' driver line up was likely until the New Year. "We might say something before Christmas but it's more likely to be the beginning of January."